In the course of removing the PUBLIC JOINT STOCK COMPANY “UKRAINIAN BUSINESS BANK” (hereinafter - UKRBUSINESSBANK PJSC), from the market, the National Bank of Ukraine has taken a decision on withdrawal of the banking license and liquidation of this insolvent bank.
In view of risky activities of UKRBUSINESSBANK PJSC, threats to the interests of depositors and other creditors, as well as the need for stronger control over the activities of the bank, the National Bank of Ukraine has introduced a special control regime art the bank through appointing a curator.
However, the owners of UKRBUSINESSBANK PJSC failed to take immediate measures to improve the bank liquidity. The bank failed to fulfill its obligations to depositors and other creditors, as well as to comply with the requirements of banking laws and regulations of the National Bank of Ukraine, therefore, the National Bank of Ukraine decided to declare UKRBUSINESSBANK PJSC as a problem bank and required from the Bank to take urgent measures to bring its operations in line with the law requirements.
As owners and management of UKRBUSINESSBANK PJSC have not drafted the financial recovery plan and have not submitted it to the National Bank of Ukraine, UKRBUSINESSBANK PJSC was classified as insolvent in December 2014.
The Deposit Guarantee Fund (hereinafter - the DGF) has decided to introduce a provisional administration and to appoint the DGF authorized person to UKRBUSINESSBANK PJSC for a period of three months from 26 December 2014 to 25 March 2015.
According to the resolution plan of UKRBUSINESSBANK PJSC, the DGF took measures aimed at finding potential investors, and therefore the provisional administration was extended till 24 April 2015, but it did not provide the expected result.
On considering the DGF proposal, the NBU Board made a decision to revoke the banking license and liquidate UKRBUSINESSBANK PJSC starting from 24 April 2015 (NBU Board Resolution No. 265 of 23 April 2015).
For reference
As of 24 April 2015, 132 banks operate in Ukraine (without banks under temporary administration) including 40 banks with foreign capital.
During 2014 – 2015, within the framework of banking system clean-up, the National Bank of Ukraine adopted 47 decisions to put banks into the category of “insolvent banks”, including 14 decision made in 2015. In 2014 - 2015, banking licenses were revoked from 36 banks that were liquidated (including the banking licenses of 2 banks located in AR Crimea and Sevastopol, which were cancelled). Among them 17 licenses were withdrawn in 2015.
In total, as of today, the category of insolvent banks comprises 13 banks, while 41 banks are under liquidation.